How much does it cost to lease an electric car?

The number of people driving electric cars is growing every year. According to Zapmap, as of March 2024, there are now over one million fully electric cars on the road in the UK.  

If you're one of the many drivers considering switching from fuel to electric, you may be curious about the financial implications of doing so.  

In this article, we'll explore why leasing an electric car has become such a popular option and outline the associated costs of making the switch.

Why choose an electric car?

Electric cars are not just a trend; they are the future. With the government's plan to ban the sale of new petrol and diesel cars from 2030, it's clear that everyone will need to switch to electric-powered vehicles in the not-so-distant future. By choosing an electric car, you're not just making a smart choice; you're also preparing for the inevitable shift in the automotive industry.

Let's explore some of the advantages of choosing an eco-friendly electric vehicle.

• Protect our environment – Electric cars don't produce any emissions, which means they don't release harmful pollutants like carbon dioxide into our atmosphere. Reducing carbon emissions is key to combating climate change.
• Save money on running costs – Electricity is cheaper than petrol or diesel, meaning electric vehicles are cheaper to run than fuel-powered cars. Electric cars are also generally cheaper to maintain as they have fewer moving parts under the bonnet, meaning there's less that can go wrong with them!
• Experience cutting-edge technology – Electric cars are not just about being eco-friendly and cost-effective. They're also packed with advanced features that enhance your driving experience, from state-of-the-art driver assistance technology to top-notch entertainment systems, safety features, and connectivity.
• Pay zero road tax – Electric cars are exempt from road tax. The government introduced this incentive to encourage more people to opt for environmentally friendly electric cars.

Why are electric cars so expensive?

Electric cars tend to be more expensive than their fuel counterparts. If the steep entry cost is putting you off making the switch from fuel to electric, let us explain a little bit more about why electric cars are so expensive.

First, electric cars can be costly to manufacture, primarily due to the expense of producing the car's battery. Then there's the cost of research and development. Electric cars are now more powerful than ever, but electric vehicle technology is still relatively new and is still evolving, so the cost of innovation and development pushes up the overall price. Additionally, the supply of electric vehicles on the market doesn't always meet the demand. Low production volumes can drive up the price even further.

Although the initial investment may be higher with an electric vehicle, when deciding whether an electric car is right for you, it's important to factor in the long-term savings you could make on running costs.

Why is leasing a better option than buying?

If you think buying an electric car outright is out of your budget – why not consider leasing one instead?

Leasing a car is like renting a car. You pay a leasing company a fixed monthly cost in exchange for driving around in a brand-new car. When you take out a lease agreement, you choose a vehicle, lease length, monthly cost, and mileage to suit your lifestyle and needs. Although you won't own the car at the end of the lease, there are several advantages to choosing to lease rather than buy.

The most significant advantage is the overall cost. Buying a car, especially a brand-new car, usually requires a much higher upfront cost. While most leasing companies require a small upfront cost, it is far more affordable than what you'd be expected to pay if you were buying the same vehicle.

Shouldering the cost of depreciation is a challenge faced by those who buy new cars. However, when you lease a new car, the leasing company must pay the price of depreciation. Leasing is also a good option for people who get bored of their car very quickly! Buying a car means committing to driving that vehicle for many years. However, when you lease a car, you can switch vehicles at the end of every lease if you wish to.

How much does it cost to lease an electric car?

The cost of leasing an electric car can vary significantly depending on the make and model of the car, the leasing company, and the lease agreement that you choose.

Let's look at some of the costs associated with leasing an electric car.

• Monthly payments – These payments include the cost of depreciation, financing your vehicle, vehicle registration and delivery, vehicle excise duty, and a full manufacturer warranty.
• Initial up-front payment – This is an advance rental payment, usually the equivalent of 3 to 12 months of rental. The more you pay up-front, the lower your monthly payments will be.
• Admin fee – This is a one-off payment to help cover the leasing company's sourcing services.
• Maintenance – Unless you add an additional package to your agreement, you are still responsible for maintenance and servicing, but these costs are usually minimal because the car is brand new.

Electric cars available from LetsTalk Leasing

Let's look at some of the best fully electric cars available to lease from LetsTalk Leasing.

Mini Cooper

The fully electric Mini Cooper is a compact hatchback that offers all the iconic style and fun of the traditional Mini combined with cutting-edge electric vehicle technology.

Available to lease from LetsTalk Leasing from £230.64 (exc. VAT) per month.

BMW X3

The BMW X3 is a sleek and spacious SUV that combines luxury with versatile performance. Its refined interior and impressive performance make it a standout choice for those seeking a premium driving experience.

Available to lease from LetsTalk Leasing from £498.39 (exc. VAT) per month.

Tesla Model Y

This mid-size crossover SUV boasts a five-star safety rating and a powerful electric powertrain. It delivers exceptional range and acceleration and advanced features, ensuring a thrilling driving experience.

Available to lease from LetsTalk Leasing from £535.81 (exc. VAT) per month.

Browse our wide range of electric cars to lease and tailor your lease contract to suit your budget and mileage needs. Contact us today by calling us on 0330 056 3331 to learn more about our electric car leasing deals.